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ZIM Integrated Shipping Services has announced a new eight-year charter agreement with a shipping company that is affiliated with Kenon Holdings, to charter three 7000 TEU liquefied natural gas (LNG) dual-fuel container vessels.

Kenon Holdings is Zim’s largest shareholder, which holds approximately 26% of Zim’s issued share capital.

The vessels will serve across the shipping line’s various global-niche trades for total consideration of approximately $400 million.

The vessels will be built at South Korean shipyard Hyundai Samho Heavy Industries and are scheduled to be delivered during the first and second quarters of 2024.

Eli Glickman, Zim president and CEO said, “We are pleased to enter into another charter agreement to secure high quality tonnage, with a focus on adding extremely versatile vessels that could serve us on multiple trades.

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“As we work to secure our core operating fleet to meet growing market demand, we remain committed to maintaining significant fleet flexibility to execute our proven global-niche strategy and best serve our customers.

“Importantly, adding green LNG-fuelled capacity further strengthens Zim’s position at the forefront of reducing carbon intensity among the global liners and will enable us to assist our customers in reducing their carbon footprint,” he said.

Mr Glickman said the transaction further demonstrates the company’s prudent capital allocation strategy.

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